GOVIND NARAIN JOHARI, Jaipur V. DCIT, Jaipur

CO 17/JPR/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 4106 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J S KULHARI
• Keywords: Tax effect

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH FOT; IKY JKO ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 318/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, JAIPUR. CUKE VS. GOVIND NARAIN JOHARI, C-7, PRITHIVIRAJ ROAD, C-SCHEME, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAQPJ 4277 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT IZR;K{KSI.K @ C.O. NO. 17/JP/2017 (ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 318/JP/2017) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR 2010-11 GOVIND NARAIN JOHARI, C-7, PRITHIVIRAJ ROAD, C- SCHEME, JAIPUR. CUKE VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAQPJ 4277 Q IZR;K{KSID@ OBJECTOR IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI J. S. KULHARI (JCIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI SANDEEP JHANWAR (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 24/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 28/08/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, JM: THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJEC TION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-4, JAIPUR ITA 318/JP/2017 & C.O. 17/JP/2017_ DCIT VS GOVIND NARAIN JOHARI 2 DATED 30/03/2017 FOR THE A.Y. 2010-11. THE GROUNDS T AKEN BY THE REVENUE AND THE ASSESSEE ARE AS UNDER:- GROUNDS OF REVENUES APPEAL: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD CIT(A) WAS RIGHT IN DELETING THE ADDITION OF RS. 40,60,300 /- MADE BY A.O. ON ACCOUNT OF INTEREST EXPENSES. 2. THE APPELLATE CRAVES, LEAVE TO RESERVE THE RIGHT TO AMEND, MODIFY, ALTER ADD OR FOREGO ANY GROUND(S) OR APPEAL AT ANY TIME B EFORE OR DURING THE HEARING OF THIS APPEAL. GROUNDS OF ASSESSEES C.O.: UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN NOT QUASHING THE ORDER PASSED BY LD. A.O. U/S 153A/143( 3) WHICH IS ILLEGAL AND BAD IN LAW FOR THE FOLLOWING REASONS: I) IT WAS BARRED BY LIMITATION. II) NONE OF THE ADDITIONS/DISALLOWANCES WERE MADE O N THE BASIS OF ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF S EARCH. 2. FIRSTLY WE TAKE C.O. OF THE ASSESSEE. AT THE OUTS ET OF HEARING, THE LD AR OF THE ASSESSEE HAS STATED THAT HE DOESNT WIS H TO PRESS THE GROUNDS SO TAKEN IN THE CROSS OBJECTION THEREFORE, THE SAME MAY BE DISMISSED AS NOT PRESSED. ON THE OTHER HAND, THE LD DR HAS NOT RAISED ANY OBJECTION IF THE ASSESSEE DOES NOT WANT TO PRES S THE GROUNDS OF C.O. THEREFORE, THE GROUNDS TAKEN BY THE ASSESSEE IN THE C.O. ARE DISMISSED BEING NOT PRESSED. 3. NOW WE TAKE THE REVENUES APPEAL. AT THE TIME OF H EARING, THE LD. AR OF THE ASSESSEE HAS RAISED AN OBJECTION OF MAINT AINABILITY OF THE ITA 318/JP/2017 & C.O. 17/JP/2017_ DCIT VS GOVIND NARAIN JOHARI 3 APPEAL OF THE REVENUE DUE TO THE TAX EFFECT NOT EXC EEDING RS. 20 LACS AS PER THE CBDT CIRCLE NO. 3 OF 2018 DATED 11 TH JULY, 2018. THE LD. A/R SUBMITTED THAT IN THE FACTS OF THE PRESENT CASE, TA X EFFECT IN REVENUES APPEAL IS STATED TO BE BELOW THE PRESCRIBED LIMIT OF RS. 20 LACS. 4. THE LD. D/R HAS FAIRLY SUBMITTED THAT THE TAX EFF ECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN 20 LACS WHICH IS PRESC RIBED THRESHOLD LIMIT IN TERMS OF THE CBDT CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 ISSUED IN SUPERSESSION OF ITS EARLIER CIRCULAR NO. 21 OF 2015 DATED 10.12.2015. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS OBSERVED THAT THE DEMAN D/ TAX EFFECT IN THE REVENUES APPEAL IN QUESTION IS BELOW RS. 20.00 LAC S . UNDER THE POWERS VESTED BY SECTION. 268A(1) OF THE I T ACT, CBDT HAS RECENTLY ISSUED CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 (F NO. 279/MISC. 142/2007-ITJ(PT) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOULD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EXCEED RS. 20 LACS. THE CIRCULAR IS SPECIFICALLY MENTIONED TO BE APPLICABLE FOR ALL PEN DING APPEALS. 6. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIREC TED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE TH E DEMAND/TAX ITA 318/JP/2017 & C.O. 17/JP/2017_ DCIT VS GOVIND NARAIN JOHARI 4 EFFECT IS NOT EXCEEDING THAN 20 LACS SHOULD BE EITH ER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES. 7. THE PRESENT APPEAL IS NOT COVERED BY ANY EXCEPTI ONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DIS PUTE IN THIS DEPARTMENTAL APPEAL IS BELOW THE LIMIT SET OUT BY CB DT FOR THE APPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN V IEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APP EAL OF THE DEPARTMENT IS DISMISSED AS NOT PRESSED/WITHDRAWN. 8. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AN D THE C.O. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/08/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:-28/08/2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CENTRAL CIRCLE-3, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- SHRI GOVIND NARAIN JOHARI, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 318/JP/2017 & CO 17/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR